Oman Introduces New Rules For Direct Renewable Electricity Sales Across The Sultanate

Oman’s Authority for Public Services Regulation (APSR) has introduced a new regulatory framework that allows direct electricity sales from renewable energy sources. The framework was established through Decision No. 54/2026, issued on April 20, 2026, by Eng. Salim bin Nasser Al-Aufi, Chairman of the Board of Directors. The new regulation enables eligible consumers to buy green electricity directly from qualified renewable energy producers across the Sultanate, marking an important step toward expanding clean energy use.

The regulation classifies direct electricity sale projects into different categories based on production capacity, project location, and the type of developer. Projects with a generation capacity of 50 megawatts (MW) or more will be assigned to the Leading National Company during its government policy period. This rule applies whether the renewable energy plant is located within or outside the consumer’s property.

Projects with capacities between 25 MW and 50 MW, as well as those ranging from 0.25 MW to 25 MW, can be developed by qualified electricity generation companies if the installation is located within the customer’s property boundaries. Smaller projects with a maximum capacity of 0.25 MW are reserved exclusively for small and medium-sized enterprises (SMEs) that hold a “Riyada” certificate, supporting local businesses and entrepreneurship.

To maintain the stability of the electricity grid, the APSR will determine an annual cap on the total capacity allocated to direct sale projects. This limit will be announced every December in coordination with the Ministry of Energy and Minerals. In addition, any renewable energy project with a capacity exceeding 25 MW must receive direct approval from the Ministry before moving forward.

The regulation also outlines the requirements for companies wishing to sell renewable electricity. Eligible companies must generate electricity only from renewable sources such as solar, wind, hydro, or bioenergy. They must also be registered in Oman, maintain physical offices in the country, and comply with national Omanisation policies. Applications for direct sale projects will be submitted to electricity distribution licensees, who will coordinate with transmission operators. Project developers are responsible for paying for technical studies to assess grid connections and any required infrastructure upgrades.

One of the key features of the new framework is its flexible pricing system. Renewable energy producers and consumers are free to negotiate electricity prices and contract terms without government-imposed price controls, allowing agreements to be based on market conditions.

The regulation also includes measures to ensure reliable electricity supply. If a renewable energy producer is unable to deliver the agreed amount of electricity, licensed suppliers will provide the remaining power using approved tariffs, subject to grid availability. Renewable energy producers must install protection and curtailment systems to prevent excess electricity from entering the grid. Grid operators also have the authority to reduce or disconnect generation facilities without prior notice during emergencies to protect the safety and reliability of the national electricity network.